Local Gas Dealer: Proposed Gas Tax Would Prove Devastating

WBAL's Scott Wykoff reports from the Hess station along Joppa Road in Towson Download This File

Hess gas station dealer Keith Madsen in front of his pumps along Joppa Road in Towson (WBAL Photo by Scott Wykoff)

Along Joppa Road in Towson, WBAL's Scott Wykoff reports on what a local gas station operator is saying about the proposed gas tax increase Download This File

The gas tax bill to fund transportation projects in Maryland will increase the price at the pump for Maryland motorists like at this Hess station along Joppa Road in Towson (WBAL Photo by Scott Wykoff)

Keith Madsen is asking motorists along Joppa Road to sign a petition at his Towson Hess station (WBAL Photo by Scott Wykoff)

Keith Madsen, the Hess dealer along Joppa Road in Towson, talks with WBAL's Scott Wykoff about what the impact of a proposed gas tax would be for Maryland motorists and gas dealers Download This File

WBAL's Scott Wykoff takes you 'pump-side" in Towson as a gas tax increase is debated in Annapolis Download This File

As Maryland lawmakers in Annapolis continue to debate an increase in the state gas tax that is included in Governor O'Malley's Transportation bill, Keith Madsen is voicing his opposition to the bill from right where the Hess station dealer in Towson says the biggest impact from the gas tax will be felt, at the pump.

Both for Maryland motorists and Maryland gas station operators like him.

"They call it a percentage, which it is, it's 2%, it sounds small but over 2 years it is going to be at least 15 cents a gallon," says Madsen standing alongside the busy pumps at his Hess Station along Joppa Road near Loch Raven Blvd and the Beltway. "And the real problem with this bill, in addition to the huge amount of the tax increase, is that it will be indexed to the CPI (consumer Price Index). So they will get an increase in tax every year without vote on it. Which is a dream, to be able to increase taxes and not have to pass a vote and not have to be held accountable for it."

The operator of gas stations in Maryland for more than 40 years says the gas tax being debated in Annapolis includes a reality that is hidden to many motorists right now but if the gas tax is passed would make it even more expensive at the pump.

The operator of gas stations in Maryland for more than 40 years says there is an additional issue created by the new gas tax that he says would force operators like him to pass an additional cost onto motorists with even higher prices at the pump than the actual tax increase would create.

"We have to pay all the credit card fees on all these increases in prices," Madsen tells WBAL's Scott Wykoff with a sign saying "HB 1515 Raises Taxes Each year Forever". "When oil prices and fuel prices go up they come back down and get some relief. When these taxes go up and go up and this one will go up every single year we will continue to collect the taxes and not be reimbursed for any of any our expenses."

A cost that he says will passed along to Maryland motorists at the pump.

He also says the proposed gas tax would devastating to some Maryland gas dealers

"The dealers along the borders will be massacred," said Madsen. "Right now for instance Virginia is lowering its fuel tax by 7 cents a gallon and instead they are raising the sales tax by a half of one percent. What's going to happen to our fellow dealers on the borders is they will be absolutely be put out of business because in some areas there is going to be a 25 cent differential in tax for instance between Maryland and Virginia."

There is little doubt in his mind that Maryland motorists will drive to buy cheaper gas elsewhere.

"It's an automatic," Madsen told WBAL's Scott Wykoff. "They'll drive a long way for 2 cents, Just think what they will do for 25 cents."

The longtime area gas station operator's opposition to the gas tax increase being debated in Annapolis is echoed by the Mid-Atlantic Petroleum Distributors Association.

"If the Governor and General Assembly leaders have their way motorist will be hit at the pump hard each year going forward without legislative input! This huge tax increase places the entire burden of paying for highways, mass transit, watershed improvement projects and the Chesapeake Bay clean up on motorist. Commuters and the poor will be hardest hit", said Pete Horrigan, President of the Mid-Atlantic Petroleum Distributors Association.

WBAL's Robert Lang reports from the State House in Annapolis the Maryland House of Delegates has given preliminary approval to a transportation funding measure that would impose a sales tax on gasoline and tie the current gasoline tax to the inflation rate.

Delegates debated the issue for more than two-and-a-half hours Wednesday night, before taking its preliminary vote.

Delegates did approve a few amendments to the measure including capping any annual increase in gasoline taxes to 8%.

They rejected an number of other amendments including a measure to remove the indexing of the gasoline tax, that links it to the inflation rate.